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Look to property for eye catching returns

Those seeking income are turning to buy-to-let and commercial buildings

Teresa Hunter

February 10 2013, 12:01am, The Sunday Times

INVESTORS are looking beyond bricks and mortar to profit from property and secure near-double digit yields.

Gross rental yields for buy-to-let properties in York are the highest in the country at 9%, according to figures by Zoopla, the property website. Peterborough is yielding 7.3% gross, and Coventry is next at 6.9%.

However, experts have warned that threats to the market, including the capping of housing benefit and a squeeze on student numbers, could hit returns in some areas in the future.

Average rents in England and Wales fell slightly in December by 0.9% to £734, although they remain up 3.4% compared to a year ago, according to LSL Property Services.

It is possible to pocket the steady yields from property without owning flats or houses…